Compare outsourcing
with performing tasks in-house. Outsourcing is the best solution
for those tasks which produce 80% of the work but only 20% of
the profits. Any routine task that does not directly impact on
the clients' experience....

We
will help you improve your cash flow and make it easier to control
your business...

...through
letting you concentrate on what you do best by leaving us to
do the rest.

How to use outsourcing
to increase your efficiency and profits

A
business owner or executive is a causative being, a hands-on
person whose ability to make things happen is one of his or her
most valuable assets.

He or she is
someone who gets things done.

And while planning
and expertise are also vital to a successful business venture,
the ability to DO is what sets the executive apart from others.

Yet there can
too much of the good thing because you cannot do EVERYTHING if
you want to expand your business.

There's only
so much that one person CAN do in a day, a week, or a month.

Therefore,
one employs other people to do things.

Yet the traditional
solution of "getting additional pairs of hands" does
not always serve the best interest of the business venture in
terms of profits.

Our outsourcing
service can be the answer. Please remember that outsourcing any
of the functions decribed on our site does NOT require you to
change your accountant or CPA.

More employees
equals more administrative work

Every
new employee needs some supervision.

Like it or
not, the ability to SEE what needs doing is a rare one. You have
it but don't assume it's a common human trait.

Supervision
in its turn requires administrative tasks, such as monitoring
the production of the employee, noticing if he or she has problems,
solving those problems, being there to support the employee,
arranging all the paperwork that goes with the employer's duties,
solving holidays and sick leaves...

...and, in
many cases, even having to facilitate his/her personal problems
as these impact the employee's time consumption or spirits...
and whatnot.

Suffice to
say there's a lot of ADDITIONAL tasks involved for YOU with every
additional employee.

Which is the
way it is, of course... nothing new about that.

But it is definitely
a point to consider when you evaluate the alternative of OUTSOURCING
some of the functions currently done in-house. Further down this
page we look at WHICH tasks you would actually BENEFIT outsourcing
and which are best kept within the company.

Before that,
let's just compare outsourcing with in-house solutions

Comparing outsourcing
solutions to performing tasks in-house

Outsourcing
has quite a few benefits, as long as you outsource the correct
function to a good service provider.

Outsourcing
an activity or task, you don't have any personnel-related problems
or duties or expenses.

You don't have
to MOTIVATE the performers of the work as it is a simple business
transaction, governed by the hard values of commerce.

A different
set of rules or legal issues govern an outsourcing solution than
employing people.

With the core
activities of your company, direct in-house control is absolutely
vital and performing it through your personnel is probably the
only viable solution.

But that's
not the case with the tasks that do not directly impact on the
client's experience. For these tasks, outsourcing is often the
easier, more cost-efficient, and timesaving alternative.

Outsourcing
relieves you of all necessity of having to accept poor quality
of work or low productivity due to aspects of human compassion.
You outsource the task and the company accepting the assignment
produces the results, as simple as that... and without any consideration
to the problems they may or may not experience within THEIR business
activity.

With tasks
performed within your company it is often difficult to predict
(or control) the COST of getting something done.

When the work
is done in-house, many things can increase the cost of performing
a specific task.

Sick leave,
sudden problems with computers or software, oddities of human
behaviour, lack of responsibility on the part of the person who
should perform the duty... (just to name a few) ...all of these
can suddenly double or triple the actual cost of having something
done.

Not so with
outsourcing. Again, it's a business arrangement and all these
problems of "human error and nature" are dealt with
by the company whose client you are.

If a task SUITS
outsourcing then basically you buy the entrepreneurship of the
OWNER of the business to whom you outsource the task. It is he
or she who will "do it or die trying," no matter if
it requires working through the night and over the weekend with
no pay.

Thus, when
you're outsourcing a task, you will "hire" an EMPLOYER,
not an employee, as it were... someone like you who'll bear full
responsibility to GET IT DONE RIGHT and on time, someone who
GETS things done.

And that's
the difference. That's why outsourcing saves you time and money
while immediately relieving you of ANY headaches related to supervision
or risk having the task performed within your company.

Outsourcing
tasks: Which tasks could be outsourced?

When you're considering
outsourcing a task, there is a specific guideline to go by in
evaluating whether or not the outsourcing of that specific activity
would actually benefit your business activity.

You want to
be absolutely certain that your decision to outsource the activity
is of clear benefit to your business.

You want to
ensure that the outsourcing solution strengthens your position
and backs up the goals you've set for your business activity.

Viewed from
that angle specifically, we cand divide the various tasks within
a business activity into two categories:

1.

Those tasks or
activities that DIRECTLY IMPACT YOUR CLIENTS in how they experience
your service, your products, and your activities.

2.

Those tasks that
are performed on regular basis but DO NOT directly impact clients'
experience of your clients' experience of you.

Tasks within
the first category are best kept within your company. These include
receiving clients, communicating with them, presentation, sales,
delivery of services, after-sales actions, and so on.

These tasks
are essential to be held within your direct control and thus
have the potential of "the pros outweighing the cons"
in terms of whatever administrative tasks come from employing
people.

The tasks within
the SECOND category can be outsourced and outsourcing these will
bring you benefits through saving time and money... and unnecessary
headaches.

These tasks
that benefit from outsourcing include:

-Payroll
-Sales Tax reports
-Bookkeeping
-QuickBooks or other software support

...and so on.

These tasks
do not directly impact your clients' experience.

Thus, they
can be outsourced if you evaluate that the disadvantages outweigh
the benefits of having these functions performed within your
company.

Outsourcing
as a way of increasing results

There's
the old 80/20 rule about business tasks in relation to income
produced thereof.

No doubt you're
familiar with it.

The rule essentially
says that 20% of actions within the company produce 80% of its
profits... and, reversely, 80% of the work done contribute maximally
20% to the net profit.

Hence the maxim:

If it doesn't
DIRECTLY influence the creating of income and profit, contract
it out.

Outsourcing
is the solution for those tasks that create bureaucracy rather
than profit.

The 80/20 rule
of profitable activities has yet another manifestation which
is known to most companies who've traded for a few years...

...stagnation
of results onto the same level.

Most businesses
experience a sort of levelling out of their performance at some
point.

That's to say,
their business activity produces more income until it reaches
an apex and settles on a level and, try as they might, they cannot
get the income back into a steeper increase from this mystical
plateau.

Essentially
what's happening here is that the 80/20 rule has taken hold and
expanded beyond.

The problem
comes with expansion. The more people you employ, the more tasks
you take on administratively  more supervision, more in-house
communication, decisions, problems, solutions required and so
on  and the more of YOUR time is required.

Now, as 20%
of the daily activities produce 80% of the net profit to the
bottom line, the 80% of administrative (not directly income-producing)
actions tend to expand MORE than the 20% of the profit-creating
actions.

Fundamentally,
a good part of those 20% of profit-producing operations are performed
or initiated by YOU... and as the administrative demands increase,
you'll find less time to devote to that which produces the INCOME
of the company.

Thus, a business
becomes heavier and its own success creates the barriers which
inevitably stagnate its growth in terms of profits and income.

Prioritizing
your own tasks helps.

But the problem
is that you cannot IGNORE the demands of the administrative tasks
either. If you neglect those then these support activities will
deteriorate and begin impeding the profit-producing activities.

Ignoring the
administrative tasks cuts off your CONTROL of the business activity...
and that's really not a viable option either.

Outsourcing
can help.

Outsourcing
routines that do not directly produce profit

If you consider outsourcing
then look at those activities which do not directly impact on
your clients' experience and which belong among the routines
taking 80% of your time while influencing maximally 20% of your
profits.

That way you'll
influence the efficiency of the whole business activity and thereby
increase its profits.

Outsourcing
these task will free up more time and resources for concentrating
on those 20% of activities that produce 80% of your profits.

Used wisely,
outsourcing saves time and money, giving you "new"
resources (space, facilities, etc.) that now can be utilized
by the activities that produce 80% of your profits.

That way, the
results can only increase.

Why not find
out if outsourcing suits your business and what you can win by
it?

We
offer a free service for businesses within New York, Long Island
and surrounding areas to find out what they could win by outsourcing
specific back office tasks.

You can approach
us by filling in the
outsourcing quote form to get an idea of the costs and savings involved
in outsourcing back office functions.

You can also
subscribe to our Outsourcing
Report
that gives more information on the benefits of well-chosen outsourcing
services.

Alternatively,
why not throw us an outsourcing challenge  explain the specifics you consider
outsourcing and we'll tell you how we would handle it.

There are also
specific articles on this web site on outsourcing selected activities,
among others...

...and quite
a few others, please see the detailed article directory at the
end of each page.

To summarize,
outsourcing is a worthwhile alternative if a task occurs on a
regular basis but has no impact on your clients' experience and
the task itself does not belong to those core activities which
produce 80% of your bottom line.

Feel free to
contact me personally if you have questions regarding outsourcing!

What
do you stand to GAIN by outsourcing select back office activities...
and how do you know which ones to outsource and which not? This
interesting article explains the pros and cons of outsourcing
and offers a make-sense tool for finding the activities whose
outsourcing brings the biggest profits and benefits.